Deferred Revenues: If a department has received amounts for services not completely performed or goods not yet received by the customer at the close of the accounting period, these amounts should be reclassified as Deferred Revenues. Some departments record the cash receipts directly to Deferred Revenue and therefore do not have to reclassify the amounts as they are correctly recorded.
Deposits: Amounts held with the expectation that the funds will be returned to the customer upon completion of an agreed-upon condition. Example: Deposits on equipment rentals. If the funds were recorded as revenue when received, they should be reclassified to a liability (Deposits). If recorded directly to a Deposit liability, no reclassification is necessary.
Each department is required to provide a Cover Memo along with supporting schedules and other documentation to report the department’s Deferred Revenue and Deposits as of June 30, 2023 to the Office of Budget & Finance. Please refer to the reminder schedule for due date(s). The documents listed below are required for each Deferred Revenue or Deposit fund maintained by the department. If the department does not have a Deferred Revenue or Deposit account but needs one to be established, contact the Melissa Johnson firstname.lastname@example.org to request a new account. Otherwise, the revenue will be posted to the departmental income cost center.
Deferred Revenue/Deposit Reporting Package (click to open file):
- The Cover Memo should be completed for each Deferred Revenue or Deposit fund. If there was no activity and/or the fund balance is zero, check the “No Activity and/or Zero Balance” box, and identify the Contact Person. The department head must sign the cover memo to attest to the accuracy of the balances, including zero balances. An e-signature is fine; otherwise print, sign and attach cover memo as pdf document. (Required).
- Schedule 1: List customers who have prepaid for future services or customers who have paid deposits. If no activity, complete Section B only when there is an A fund.
Schedule 1 is required for each active Deferred Revenue or Deposit fund at year-end.
- Deferred Revenue/Deposit Template: Use this template to record the journal entry per the instructions included in the spreadsheet.
A template is required for each Deferred Revenue or Deposit fund to be adjusted at year-end.
Return completed reporting package as an excel file and other supporting documents as a pdf, via email, to the Pam Arrowood email@example.com by the due date.